- Moody's Investors Service (Moody's) reaffirms Western Australia's Aaa credit rating
- Aaa is the highest possible credit rating Moody's provides
- Announcement highlighted the ongoing strong financial management of the Cook Labor Government
- It follows S&P Global's confirmation of Western Australia's AAA rating in August
- Western Australia is the only state or territory with a tripleA credit rating from both Moody's and S&P Global
- Moody's restored the State's Aaa credit rating in July2023, after it was lost under the previous Liberal-National Government in 2014
Western Australia's nation-leading economy has been highlighted once again with Moody's today announcing it had reaffirmed Western Australia's Aaa credit rating.
It follows a similar announcement by S&P Global in August that it too had reaffirmed Western Australia's AAA rating.
It means Western Australia remains the only state in the country and one of the few jurisdictions globally with a triple-A credit rating from the two major credit rating agencies, the highest possible rating that can be provided.
The triple-A ratings were first reinstated under the Cook Labor Government in 2023, after they we lost by the previous Liberal-National Government in 2013 and 2014 respectively.
The Cook Labor Government's strong financial management has allowed record investment in economic and social infrastructure across the State to diversify the economy and drive economic growth. It has also invested in priority areas to improve services for all Western Australians, both now and into the future, and has helped ease cost of living pressures for families.
All of this has been achieved while consistently delivering operating surpluses and reducing the high levels of net debt saddled on Western Australia by the previous Liberal-National Government.
In its report released today, Moody's highlights the Government's strong management of the State's finances, stating that the 'State's strong financial position has been driven by its excellent governance, including strong expenditure controls and conservative budgeting protocols'.
The report went on to add that 'sustained fiscal discipline and strong debt management over the past few years has enabled the State to apply windfall revenue gains to pay down debt as well as setting aside surpluses for future capital expenditure, including investment in climate action initiatives, social housing, as well as providing cost of living relief'.
It further reported that 'Western Australia's credit profile has materially strengthened over the past six years evidenced by high debt affordability and a material and permanent easing in the State's debt burden'.
As stated by Treasurer Rita Saffioti:
"Our Government knows that a strong economy underpins everything else we do it means more jobs, better quality of living and greater investment in things that matter like cost-of-living support and better infrastructure.
"The reaffirmed Aaa rating from Moody's means Western Australia remains the only state in the country with a triple-A rating from the two major credit rating agencies, and our Government will continue to focus its effort on growing the economy, creating jobs and investing in the things that matter to Western Australians.
"Our strong financial management credentials are clear for all to see, with six consecutive general government operating surpluses since 201819 and surpluses forecast across each year of the Budget period to 202728. As Moody's has noted, Western Australia is the only state or territory to achieve consecutive operating surpluses since 201819.
"We have reduced net debt from a projected $43.7billion when the previous Liberal-National Government left office, to an estimated $28.6billion at 30June2024, which relative to the size of our economy, is the most affordable in the nation.
"All of this has been managed while delivering improved services for the Western Australian community through record investment in the health system, education and training, and housing and homelessness. We have also provided significant cost of living relief to all households and are building key infrastructure to set the State up for continued economic success."
